Sigma-Aldrich Added to CDLI

Sigma-Aldrich Corporation ( SIAL - Analyst Report ) announced that it has received recognition from The Carbon Disclosure Project (CDP), which holds the largest database of corporate climate change information in the world. The CDP has added Sigma-Aldrich to the Carbon Disclosure Leadership Index (CDLI) for the first time, which includes the top 10% of S&P 500 and Global 500 companies, with respect to transparency in climate-related issues.

CDLI recognizes companies that execute strong measures to reduce greenhouse gas emissions and demonstrate a good understanding of the business issues related to climatic changes. The companies that are listed on CDLI depict strong internal data management practices for the measurement of greenhouse gas emissions and energy use.

For 2012, 53 companies from the S&P 500 have been added on the CDLI based on their responses to CDP's questionnaire, which focus on greenhouse gas emissions, emissions reduction targets and the risks and opportunities associated with the climate change. Sigma-Aldrich has set a number of goals to reduce the intensity of natural resource use by 2015.

Sigma-Aldrich, a life science and specialty chemical company, released its second-quarter results for 2012 in July. The company posted adjusted earnings of 97 cents per share in the quarter, in line with the Zacks Consensus Estimate but ahead of the year-ago earnings of 93 cents per share. Profit, as reported, marginally increased to $115 million or 94 cents per share in the quarter from $113 million or 91 cents a year ago.

Revenues came in at $664 million in the quarter, up 4% year over year but below the Zacks Consensus Estimate of $673 million. Acquisitions contributed 6% to the sales growth while foreign exchange translation had an unfavorable impact of 5% on sales. The company saw growth across its Research Chemicals and Fine Chemicals (“SAFC”) divisions.

Moving ahead, Sigma-Aldrich expects organic growth to be low-to-mid single digits in 2012, down from the earlier expectation of mid single-digits. Macroeconomic uncertainties may hinder its Research Chemicals business whereas growth in Bioscience and Hitech is expected to drive SAFC sales for the remainder of the year. The acquisitions of BioReliance and Research Organics are expected to boost sales by 6%.

Sigma-Aldrich, a close peer of Bayer AG ( BAYRY - Analyst Report ) , currently maintains a Zacks #2 Rank, which translates into a short-term (1 to 3 months) Buy rating. We have a long-term (more than 6 months) Neutral recommendation on the stock.